Equity intraday brokerage at Zerodha
Overview
Zerodha charges 0.03 percent of turnover per executed order or Rs 20 per executed order, whichever is lower, on equity intraday trades placed under the MIS (Margin Intraday Square-off) product type on its Kite platform. This rate applies on each leg of the trade – both the opening order and the closing order – and is assessed against the actual traded value, not the notional value leveraged through intraday margin.
The 0.03 percent / Rs 20 structure means that Zerodha’s brokerage advantage over legacy percentage-model brokers is largest on small intraday trades (where Rs 20 cap is decisive) and almost identical for very large trades (where 0.03 percent itself remains low). Intraday trades also carry a reduced securities transaction tax compared with delivery trades, though the other statutory levies – exchange charges, GST, stamp duty, and the SEBI turnover fee – still apply.
Definition of intraday trading on Zerodha
An intraday trade on Zerodha’s Kite platform is a buy-and-sell (or sell-and-buy) sequence in the same equity security completed within the same trading session, so that the client holds zero net position in that security at market close. Orders placed under the MIS product type qualify as intraday. If a client places an MIS buy order and does not close the position before the auto-square-off time (typically 3:20 PM IST for equity MIS), Zerodha’s system automatically squares off the position at the prevailing market price and may charge an additional Rs 50 penalty per executed auto-square-off order.
The CNC (Cash and Carry) product type, by contrast, always results in delivery regardless of whether the position is sold the same day; a same-day CNC buy and sell is treated as a delivery transaction for STT purposes, even though no net demat change occurs by end of day.
Brokerage rate and the Rs 20 cap
The applicable brokerage formula is:
Brokerage per leg = min(0.03% x turnover, Rs 20)
where turnover = quantity x executed price.
The breakeven point at which 0.03 percent equals Rs 20 is a turnover of Rs 66,667 per order. For orders with turnover below Rs 66,667, the 0.03 percent rate applies and the charge is less than Rs 20. For orders at or above Rs 66,667, the charge is capped at Rs 20.
| Turnover per order | Brokerage at 0.03% | Capped at Rs 20? | Effective brokerage |
|---|---|---|---|
| Rs 10,000 | Rs 3.00 | No | Rs 3.00 |
| Rs 30,000 | Rs 9.00 | No | Rs 9.00 |
| Rs 66,667 | Rs 20.00 | At cap | Rs 20.00 |
| Rs 1,00,000 | Rs 30.00 | Yes | Rs 20.00 |
| Rs 5,00,000 | Rs 150.00 | Yes | Rs 20.00 |
The brokerage per order is charged on both the buy leg and the sell leg, so the maximum brokerage on a complete round-trip intraday trade is Rs 40 (Rs 20 per leg), regardless of turnover.
Statutory levies on intraday trades
Securities Transaction Tax
STT on equity intraday (MIS) trades is 0.025 percent of turnover on the sell side only. This is lower than the delivery rate of 0.1 percent on both sides. The rate is levied at the exchange level; Zerodha has no discretion over it. For a Rs 1,00,000 intraday sell, STT is Rs 25.
Exchange transaction charges
NSE charges approximately 0.00297 percent of turnover per side on equity cash segment trades, regardless of whether the trade is delivery or intraday. BSE rates differ slightly. For a Rs 1,00,000 trade on NSE, the exchange charge per side is approximately Rs 2.97.
Stamp duty
Stamp duty on intraday equity trades is 0.003 percent of turnover on the buy side only (nil on the sell side). This compares with 0.015 percent on delivery purchases. For a Rs 1,00,000 intraday buy, stamp duty is Rs 3. The lower rate reflects the temporary nature of the holding – no actual ownership transfer occurs in the demat sense.
SEBI turnover fee
0.0001 percent of turnover per side. Rs 0.10 per Rs 1,00,000.
GST
18 percent on the sum of brokerage, exchange transaction charges, and the SEBI turnover fee. For a trade with Rs 20 brokerage and Rs 2.97 exchange charge and Rs 0.10 SEBI fee: GST = 18% x (20 + 2.97 + 0.10) = Rs 4.15.
IPFT
0.0001 percent of turnover per side. Included in what Zerodha labels “exchange charges” on the contract note.
DP charges
DP charges do not apply to intraday trades because no actual demat debit occurs – the position is squared off within the session without any change to the client’s demat holdings.
Worked example: complete intraday round trip
Scenario: Buy 500 shares at Rs 400 each (Rs 2,00,000) and sell all 500 at Rs 410 each (Rs 2,05,000) within the session on NSE.
Buy leg (Rs 2,00,000 turnover):
| Charge | Calculation | Amount (Rs) |
|---|---|---|
| Brokerage | min(0.03% x 2,00,000, 20) = min(60, 20) | 20.00 |
| STT | Not on buy side for intraday | 0.00 |
| NSE transaction charge | 0.00297% x 2,00,000 | 5.94 |
| SEBI turnover fee | 0.0001% x 2,00,000 | 0.20 |
| IPFT | 0.0001% x 2,00,000 | 0.20 |
| GST | 18% x (20 + 5.94 + 0.20) | 4.70 |
| Stamp duty | 0.003% x 2,00,000 | 6.00 |
| Buy-side total | 37.04 |
Sell leg (Rs 2,05,000 turnover):
| Charge | Calculation | Amount (Rs) |
|---|---|---|
| Brokerage | min(0.03% x 2,05,000, 20) = min(61.50, 20) | 20.00 |
| STT | 0.025% x 2,05,000 | 51.25 |
| NSE transaction charge | 0.00297% x 2,05,000 | 6.09 |
| SEBI turnover fee | 0.0001% x 2,05,000 | 0.21 |
| IPFT | 0.0001% x 2,05,000 | 0.21 |
| GST | 18% x (20 + 6.09 + 0.21) | 4.73 |
| Stamp duty | Nil | 0.00 |
| Sell-side total | 82.49 |
Total round-trip cost: Rs 119.53 Notional gain: Rs 5,000 Net profit after charges: Rs 4,880.47
Auto-square-off penalty
If Zerodha’s system squares off an MIS position because the client failed to do so before the auto-square-off cutoff, an additional Rs 50 penalty is charged per executed auto-square-off order. This is charged on top of normal brokerage and statutory levies. The Rs 50 penalty is a Zerodha administrative charge, not a statutory levy.
Call and Trade surcharge
If an intraday order is placed through Zerodha’s Call and Trade desk rather than through the Kite app or web platform, an additional Rs 50 per executed order is charged. See Call and Trade charges.
Comparison with delivery brokerage
The key differences between intraday and delivery trades from a cost perspective:
| Factor | Intraday (MIS) | Delivery (CNC) |
|---|---|---|
| Brokerage | 0.03% or Rs 20 (whichever lower) | Zero |
| STT | 0.025% on sell only | 0.1% on both sides |
| Stamp duty | 0.003% on buy | 0.015% on buy |
| DP charge | Nil | Rs 15.93 on sell |
| Leverage | Up to 5x on eligible scrips | No leverage (1x only) |
For a Rs 2,00,000 trade, intraday total charges are approximately Rs 119.53 as computed above. The equivalent delivery round-trip would carry zero brokerage but a higher STT burden (0.1 percent each side) and a DP charge, resulting in higher total cost for investors who hold overnight.
Active day traders therefore face lower statutory costs per rupee of turnover on intraday trades than on delivery trades, but they pay the Rs 20 brokerage per leg that delivery investors avoid.
Tax treatment of intraday gains and losses
Profits from equity intraday trading are classified as speculative business income under Section 43(5) of the Income Tax Act 1961. This classification has significant implications:
- Speculative losses can only be set off against speculative income, not against other business income or capital gains.
- Speculative losses can be carried forward for four years.
- Tax on speculative income is at the applicable income tax slab rate, not the concessional 15 percent rate available on short-term capital gains under Section 111A.
- Intraday traders must maintain proper books of accounts if turnover exceeds the threshold requiring tax audit.
STT paid on intraday trades is allowable as a business expense deduction under Section 36(1)(xv).
Margin requirements for MIS orders
Intraday MIS orders on Zerodha require a smaller upfront margin than delivery orders because of intraday leverage. As of mid-2026, SEBI regulations require that peak margin (the maximum intraday margin consumed at any point during the trading day) be collected from clients. Brokers are prohibited from providing leverage beyond what SEBI’s Margin Collection System permits. Zerodha’s MIS leverage is therefore SEBI-compliant and varies by security based on SEBI-prescribed VaR and ELM margins.
See also
- Zerodha brokerage structure overview
- Equity delivery brokerage
- STT and CTT on Zerodha
- GST on broking charges
- Stamp duty by segment
- SEBI turnover fee
- Call and Trade charges
- Zerodha
- National Stock Exchange
- Bombay Stock Exchange
References
- Zerodha Charges page, support.zerodha.com/category/charges (accessed May 2026)
- Finance Act 2004, Chapter VII (Securities Transaction Tax), Section 98 – rates for equity intraday
- Indian Stamp Act 1899, Schedule I, Article 5(c), as amended by Finance Act 2019
- SEBI Master Circular for Stock Brokers, SEBI/HO/MIRSD/MIRSD-PoD-1/P/CIR/2023/72
- NSE Circular: Schedule of Charges for FY 2025-26
- Income Tax Act 1961, Section 43(5) – definition of speculative transaction